U.S. · Tax forms
Form 1120 line 28, taxable income before NOL.
How line 28 is figured, what can adjust it, and the lines that come right after it.
Line 28 (“Taxable income before net operating loss deduction and special deductions”) is line 11 total income minus line 27 total deductions. Closely held corporations subject to the at-risk rules may have to adjust it for section 465(d) losses.
Look up a line
Result
The lines around line 28, 2025 form
| Line | Meaning | What the IRS says |
|---|---|---|
| Line 11 | Total income | Add lines 3 through 10 |
| Line 27 | Total deductions | Add lines 12 through 26 |
| Line 28 | Taxable income before NOL and special deductions | Subtract line 27 from line 11 |
| Line 29a | Net operating loss deduction | See instructions; attach a statement showing the computation |
| Line 29b | Special deductions | Schedule C, line 24 |
| Line 29c | Add lines 29a and 29b | The total subtracted from line 28 |
| Line 30 | Taxable income | Subtract line 29c from line 28 |
| At-risk adjustment | Section 465(d) losses | If the at-risk rules apply, adjust line 28 for section 465(d) losses and attach Form 6198 |
The at-risk rules
The instructions say section 465 at-risk rules apply to closely held corporations engaged in any activity as a trade or business or for the production of income. They do not apply to holding real property placed in service before 1987, equipment leasing under sections 465(c)(4), (5) and (6), or a qualifying business of a qualified corporation under section 465(c)(7). They do apply to holding mineral property.
Losses by activity
If the at-risk rules apply and the corporation has more than one activity, any of which has a loss, the instructions say to report the losses for each activity separately on Form 6198. A loss not allowed for the year is treated as a deduction allocable to the activity in the next tax year.
Do not confuse the line numbers
Page 1 line 28 is a taxable income figure. Schedule K, Schedule L and the other schedules of Form 1120 have their own line 28, so check which part of the form a reference points to.
Worked example
Birch Hollow Supply, Inc. (made up) has total income of $504,700 on line 11 and total deductions of $438,900 on line 27 (lines 12 through 26). Line 28 is 504,700 − 438,900 = $65,800. Names and figures are made up.
More line pages in this set
Related lines: Form 1120 Line 11, Form 1120 Line 26, Form 1120 Line 29a, Form 1120 Line 30, Form 1120 Schedule J Line 12, Form 1120 Schedule J Line 17, Form 1120 Schedule J Line 18.
Sources
- Instructions for Form 1120 (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Form 1120 (2025), U.S. Corporation Income Tax Return: the printed line wording and arithmetic on the form (Form 1120 (2025), created 9/26/25). Read November 2, 2026.
Tax year 2025 forms and instructions: Form 1120 (2025) and its 2025 instructions. Line numbers and labels were read from the IRS PDF and instructions on the date read and can change between tax years, so check them against the form for your year. Names in worked examples are made up.
Frequently asked questions
What is Form 1120 line 28?
Taxable income before net operating loss deduction and special deductions: line 11 total income minus line 27 total deductions.
What comes after line 28?
Line 29a is the net operating loss deduction, line 29b the special deductions from Schedule C, line 29c their sum, and line 30 is line 28 minus line 29c.
Can line 28 be negative?
Yes, if deductions exceed income. Line 30 may then be zero or less, and the instructions say the corporation may have an NOL that can be carried to other tax years.
What are the at-risk rules for line 28?
Closely held corporations may have to adjust line 28 for section 465(d) losses limited to the amount at risk, and attach Form 6198.
Where do special deductions come from?
Line 29b takes Schedule C, line 24, and the instructions send you to the Schedule C instructions.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.